comcast making an offer overnight. bidding nearly $31 billion for british broadcasters sky. higher than a rival proposal for 21st century fox. we break down this dusted off for what it could mean for the view with disney coming out. fox continued to acquire skype and comcast comes in. battle over the nra. georgia vows to block tax breaks for delta after severed ties with the organization. fedex a few discounts for members despite calling for a boycott as president trump slammed first responders to the tragic shooting of florida calling them cowards come as saying that he would've taken action if you were their position. >> you know, you don't know until you test it, but i really believe i'd run and even if i didn't have a weapon and most of the people would've done that, too. because i know most of you. >> the commander-in-chief

prepares to meet with a bipartisan group of lawmakers tomorrow to address gun violence. extreme weather same in the united states wreaking havoc in several states. storms expected to bring in wind and rain throughout the day. what you did spell about about the dangerous weather coming out. roger goodell going head-to-head with america's team expecting to send dallas cowboys owner jerry jones with a massive penalty with a reported seven-figure fee. all the stories coming up this morning to talk about it is dagen mcdowell. "the wall street journal" global economics editor jon hilsenrath upholster lee carter is here. good to see you. >> good morning. spirited morning. dagen: msu. maria: jay powell big story. >> 830 to his testimony testimony and then q&a. >> 8:30 to get the embargo. this is a big moment for the market.

a lot of that seems to have come through the system. powell says things pleasing to investors we could have another big day in the market. dagen: people have been buying treasuries the last few days as well with the yield falling. that is not a repeat of what we've seen since early february. >> one of the things we have to watch closely out of powell is what he says about rising u.s. deficit, tax cuts and spending increases that the biggest threat on his view of how the economy is doing. dagen: and does it have a vernacular like lip quiver that unnerves. it's official -- i joke, but again the body language. >> jay powell does not have a denver nike like lip quiver. maria: are you sure? >> we've seen him enough. he was a little uncomfortable and public. jay powell will be okay.

maria: bert mackie as soon first testimony, we had a chat in the sword of god, hello mr. bernat key. >> i think jay powell is a little more seasoned on that front. >> are there things haywire today? >> people are looking to see whether he will signal more interest rate increases. the market is looking up for. frankly, if you says three or four i don't think it that big of a deal. i don't think we'll know whether they will do for until later in the year. >> more about this coming up with comcast trying to bump up fox's deal with sky. this morning the big interviews starbucks executive howard schultz this morning. louie gohmert is with us as well. former republican candidate herman kaine is here. ken paxton is here an

entrepreneur author and star of dark dynasty, misty robinson with us again. discredited program had to redo one ahead on our top story right now and that is the market surging ahead of those comments from the chairman of the federal reserve. the dow finished the day up 400-point mark in the third straight day of gains as stocks continue to call back from february losses. the gnostic is come all the way back. jay powell who is set to answer questions on capitol hill this morning before the house financial services committee is really what we are talking about. in terms of what you're looking for, he's got to address inflation and higher interest rates in his words about market. how far he'll go in terms of market activity. >> i don't think he's going to go too far. the question of whether we had for inflation outbreak, i think he's going to play this card close on this. he doesn't want to get out in front of what he knows. we know that we are going to see some higher readings on

inflation in the next few months. we know that, but we don't know if it's a big sustained increase and i don't think he will prejudge that. this is what fed officials always say. you don't want to see the data player the data play out before you give any signals that the fed is hearing from his course. >> interesting to see the big deal about comcast between sky and fox. comcast made it $30.9 billion all cash offer, topping a rival bid from 21st century fox. this comes after disney agreed to acquire a chunk of assets from fox including its stake in fact for $62 billion. that is part of the deal particularly attractive for disney as a way to grow its footprint overseas. so what does this mean in terms of the disney deal? >> you know, i can tell you what it means about the broader markets. it is a sign that low interest rates, tax cut, rising market

are all over the market place. as far as the disney deal, you know, it's a bidding war. we have to see if they offer rates increase. dagen: we can tie this story to what is happening with the federal reserve and jay powell in terms of overinflated assets. assets across the board being particularly risky assets with the federal reserve has done in terms of monetary policy and pushing people to again into these attend and to these bidding war stories and pushing individuals into the crypto currant seed mania. i hope jay pollak is pressed on that. does he think that the fed's policy has created a bubble across all these asset classes? >> what just happened in the markets is this 10% correction that we got. the markets need a little bit of levity, since i'm things aren't

going up forever to take some of the steam out of financial assets. there is a healthy thing. maria: let's not forget comcast wanted to acquire the fox assets. fox told comcast go away, we are going with disney. comcast has every interest in busting up the deal because comcast is one of the bidders for the fox entertainment assets. fox will with disney instead of comcast. no comcast comes in and they say we are going to best of the deal by acquire inside because sky was part of the deal with disney. >> right, right. it is a complicated -- maria: not that complicated. dagen: fair to question the motives. maria: that's what i'm saying. so we will watch that. it's interesting because this is a 15% higher bid for sky and fox had on the table with its deal with disney.

a lot of cash on the table and i agree we will see more deals this year from the tax bill. we will keep following that. keep your writer and fox business. live coverage of jay powell's testimony at 10:00 a.m. eastern this morning. he's going to take questions. do you see any difference in the house part of it versus the senate part of it? he speaking to the senate banking committee on thursday. >> he tends to get a lot of questions about bank regulation when he does the house also. so i think he's going to get a lot of that. the janet yellen days, the house environment was a little more hostile than the senate environment. they will see powell as a republican who will face less hostility than janet yellen did. and of course, the house is his first crack at it crack at it from us in the big news will come today. not thursday. maria: what about the fact that the president has suggested we are going to see changes to

dodd-frank in the coming months so that also could be part of that. the banking sector wants to see him out more looser capital. >> this is one of the things that i'm going to be looking forward, maybe two in the weeds, but the vice chair of supervision was just speaking yesterday. he said the fed is not looking to dramatically bring down bank capital levels of the strong bank capital levels is making u.s. banks more competitive. i'm looking to see the economy and he said the economy might have some room to run without causing too much inflation. i'm looking to see how much rain to cause and jay powell are in how they talk about the economy and regulation because this is potentially a real partnership "-end-quotes as part of the powell inner circle. we have to see how the two speak back and forth to each other. dagen: i hope jay pollak at just about the regulatory crackdown on wells fargo as one specific

target where they forced the company to replace members of the board of directors, impose a limit on the size of the bank. this is under janet yellen tenure as she heads for the exits. jay powell voted in favor of the action in doubt was an overreach, maybe. if you don't believe in excessive regulation. again, they targeted that one bank is >> is the different between regulation and enforcement. if wells fargo overstepped its bounds, i think one of the lessons we learned from the crisis as regulators have to enforce the rules pretty aggressively. dagen: is going to say i think that's what the american people want when it comes to gun safety in this country. can we start by enforcing a law that protecting its people and having my enforcement do their job. not to pay the. there are rules on the books. >> jay powell was totally onboard with that. maria: will take a break of a

comeback, more storms on the way for the middle of the country is dozens of rivers are at or near flood stage in the high river valley to central texas. people are bracing for the worse they will take you there. exclusive first look at the generation of starbucks. plus, one-on-one with howard schultz to talk about the new direction in the impact of tax reform at starbucks. back in a moment right here. ♪ the day after chemo might mean a trip back to the doctor's office, just for a shot. but why go back there, when you can stay home with neulasta onpro?

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more wild weather coming to the central part of the countries struggling to recover from the weekend tornadoes lauren simonetti with details this morning. >> heavy rain and melting snow causing major floods in the midwest with more rain believe it or not. expected today that heavy rains that started last week have left massive flooding from louisiana to michigan. officials fear that the ohio river may crest or louisville today. the governor of missouri, indiana and illinois have disaster emergencies. meanwhile in italy the torrents are enjoying this. the rare snowstorm in rome. the last time the real snow was 2012. even they couldn't resist the

opportunities to tie snowballs from st. peter's square. the city which is not equipped with a snow emergency. they ask other areas to send and snow plows to help them clear the roads. a possible privacy issue for apple. the u.s. government may be able to gain access to any iphone could a major contractor the government is claiming every single iphone on the market. celebrate is the name of the company telling customers that if engineers had the ability to break into devices that run ios 11. celebrate has been the seller of government choice when it comes to the ability to unlock phones. saudi arabia's role or shaping of the country's military leadership. king salman has military achievement staff. another commander in the shakeup and a rare move the king has appointed a one-man as deputy minister. the king as he told you, maria a

few months ago that he's taking a hard line. >> 70% of the saudi people are less than 30 years old and quite frankly, we will not waste 30 years of our lives in dealing with extremist ideas. >> just to clarify, that was the incoming king. the king changes -- decreased by the saudi press agency. maria: line, thank you so much. what's interesting about the company getting macs as they been talking about this for a couple years. is this a game changer for them on first and second they can get into any iphone? >> i hope it is actually. the way apple has redesigned generations were found are impenetrable by law enforcement or the novel. i said all along, if you were a member of law enforcement and

you have a legitimate court order, if you have a warrant, these phones then give cover to terrorists, child molesters. you've seen previous cases on laptops, for example. you can't force somebody to open the phone. i think that this is a necessary tool for the federal government to have. maria: last time we were talking about this were focused on the san bernardino case when they wanted access to the phone. the technology companies were sending if we open it for you and we put a backdoor there for you to open the phone, that opens it up to the bad guys. that opens it up it makes the phone vulnerable. would you think about that? dagen: was more about their customer base. i understood the legal argument that apple, where they were being forced to write specific

code to open the phone. and they were concerned about the legal precedent that was set for a future cases. i think that they have a lot to answer for if you are going to basically say hey, child molesters coming you can hide all of your on these phones. >> was there also a question of privacy we have to be talking about? dagen: if you have a legitimate warrant to search a device, there is no if one person you can't get into it on their own, apple has done this and said we are not for the most part in writing the software to open it, that they wash their hands. >> no open a pandora's box. maria: that's what i'm saying. >> at the answer in san bernardino they said it was someone in israel back then that they did. now they are just saying they can. is this a bit shifter is this publicly saying what a lot of people knew.

>> i know saipan has had issues with not being able to get into electronic devices and they have legitimate court ordered warrant to search devices and they can't get into them. maria: he said he had about 10 thoughts on his desk he could get into a native there is information on that phone they needed in order to prosecute drug dealers, et cetera. it's an interesting development. trade through more information on the clout that actually helps but my enforcement because it's easier to ask for something residing on the phone. as stringent about the nra. delta taking sides in the gun debate. the airline called home. this comes as the president tells the nra they've got to do something in the wake of the florida school shooting. plus, jay powell looking to put his stamp on things as the chairman of the federal reserve could be a market mover today. dow futures falling back 60 points. we are back in a minute.

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maria: welcome back. financial and technology sector report for turning after the close. in consumer finance. other big names include paypal. right now is dan separating. good to see you. it's interesting to look at because right now you see the financial service companies acquired technology so they can have better offerings for the customer. what's going on with that?

>> fundamentally banks have a hard time catering to millennial and that lack of a user experience that no one else really liking and enjoy and are used to lead to a big opening for syntax. in addition to these user experience, right now the last 10 years the democratization of assets that is going on enabling retail consumers to actually access investment they haven't been able to access previously. started 10 years ago with lending club. you were able to now invest directly with consumer loans could not be a large bank with a credit program booklet in 1000, 10,000 millions directly on the platform without any intermediary. you see the same thing happened in real estate with companies like bluestocking realty mogul. the same thing happened in private high-growth companies with companies like circle up an angel list. so these are all trends that are

really based on democratization of assets. and now you have something brand-new coming into place where you have brand-new assets, which are crypto assets and that is something banks don't have any idea what to do with. so i think that really has a tremendous opening to enable them to address this segment of the market. i think it will lead fundamentally to acquisitions. similar to what is happening in the pharmaceutical industry where you have lots of farm of. initially put in lots of money in r&d and not taken all the money and buying companies to get innovation into the pipeline could something similar will happen in financial services as well. >> it's been run up in the overall stock market. finance came in relatively cheap after the financial crisis. where are we right now in terms of how overpriced or underpriced financial companies are.

>> you know, a lot of it depends on the hype cycle if you will. drop rocks announced they were doing an ipo. they been around for a while. there's money in the $10 billion valuation privately. he will be interesting to see whether they achieve that or not. a lot of other companies are going public now better at lower valuations that are doing really well, which enables banks to essentially operate as google. they can place advertisements right next to your debit card statement. if you buy burger king you could have a promotion for donald's right next to it. that company went public last month of 50%. these are the kinds of companies, not types, the real value of a real transformation taking place that are seeing real significant momentum in the stock market. >> let's talk about gambling.

the crypto currencies. the larger financial institutions are moving quickly because they realize the risk. i'm looking at square, for example in three square pay you can essentially gamble in fractional shares ended in your advertisements across those millennial's without explaining the risk and really pitching crypto currencies not as a current need, but as a scratch ticket if you will. that is what it sounds like a man old enough to remember the other bubbles. >> yeah, listen in. i think there is a real issue there. we are in the wild west right now. there's going to be lots of changes that occurred regulatory ones over time. i think that many of these icus are literally nothing but scams. having said that, i think there

is real validity to what is going on in crypto current day right now. a lot of millennial's believe in math, not government and they want currency that speaks to mathematical computation, zuckerberg at fiat. >> are they going to be buying crypto companies are issuing their own. what are they due to catch the wave. >> a lot of it depends on what happens at the regulatory apparatus around crypto in what is going to be implemented. i think banks are going to be very, very careful and wet surrounds it. what is loud, what is sent. >> this is jay powell's testimony.

>> is there something you are doing. >> day after crypto current in my understanding is they had literally millions and millions of new applications over the last six months. many more than schwab ever had, for example. over a similar period of time. sending people want to invest in witches associated with it. they want to come out of the clear about what's allowed and what is not. you need to be very clear. all of those things need to happen. i do think there's a bit of a bubble here. i said a few months ago.

and i think there's some of that -- it's come back down to 10,000, right? >> i think it's very hard to say. it will be a very significant downdraft, similar to what happened in the 2000 era for internet things went down very far, people considered, consumer internet, nothing but toxic waste and crypto coin is a revolution. maria: so you like it long term? >> long term. maria: coming up clash of the football titans, dallas owner jerry jones supposedly getting slammed with 7-figure fine by

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maria: welcome back happy tuesday, thank you so much for joining us. i'm maria bartiromo and it is tuesday february 27th, top stories right now 6:30 a.m. on the east coast. finding a solution, president trump set to meet with lawmakers tomorrow focusing on legislation in the aftermath of the parkland shooting, bills are already facing uphill battle, plus corporate america caught in the middle. delta airlines ending relationship with the nra. now it is facing backlash from home state over tax breaks but fedex is standing firm on its support for nra members. the fallout coming up this morning. stocks rally yesterday to stock the week off pretty strongly. dow and s&p 500 climbing for a third day in a row and with yesterday's gains nasdaq that is recovered completely from the selloff this month. checking market action this morning, though, we are looking at pullback, dow futures a quarter of a percent, down 57 points at the opening of trading this morning. investors are waiting the testimony of federal chairman

jay powell, he will answer questions from the house committee today, 10:00 a.m. eastern. we will have the written testimony at 8:30 a.m. eastern, we will bring that to you as soon as we get it at 8:30, do stay with us for that. busy economic calendar, durables are out 8:30 a.m. eastern this morning ahead of gdp tomorrow, president trump touting the strength of the economy while meeting with the country's governors. >> i think we will have another really big one coming up, this current quarter, maybe a number that nobody would have thought would ever be had, but i think we will have a very good number because of the stimulus, because of the massive tax cuts. maria: global markets this morning, a mix, take a look at european indices, lower this morning, germany's dax down two-thirds of 1%, worst performer. in asian overnight, stocks

closed mostly lower with the exception of japan, better than 1er. shanghai composite, worst performer down better than 1%. starbucks is getting new look with reserved stores, the first one in the united states opens today, exclusive in seattle, we will take you there and bring you access to that first store this morning with that exclusive coverage. plus i will speak with the chairman of the company. roger goodell going back with america's team, nfl commissioner expected to hit dallas cowboys owner jerry jones with massive penalty. more on the 7-figure fee coming up. russell wilson showing up his game on diamond. blasted several home runs during batting practice yesterday. we will take you there. first top story this half an hour, the push for tighter gun control, president trump will meet with lawmakers from both sides of the aisle tomorrow to talk about legislation possibilities that could prevent more tragedies like the florida school shooting, he spoke with governors of the country yesterday and assured them he's ready to take action.

>> i had lunch with wayne lapierre of the nra, i want to tell you, they want to do something, we have to do something, we will do strong background checks, very strong, we have to do background checks, if we see a sicko, i don't wanl him having a gun. maria: meanwhile house majority leader kevin mccarthy that there's support if. >> a plan to revamp the background check program. >> that is actually sitting in the senate today but what's really important is a part of that bill that fixes the nick, the national instant criminal background check, had that worked the shoot -- -- shooter in texas wouldn't have happened as well. maria: nick johnston, thanks for weighing in here, do you think lawmakers will take action here?

>> i think we are at a bit of a impasse, improvement on improving the background situation but when it went to concealed carry and now in the senate chuck schumer says that other pieces need to be included not just this one, very similar to immigration debate, additional things were piled on and the bill eventually died it's what we are seeing today in the house and senate as i wrote in axios.com, this is a mess. maria: we were talking about this this morning, first, we would like to see that those laws -- they are actually followed and before you start talking about putting new laws on the book. >> that's a huge position taken by a lot of republicans and sort of allies of the nra saying that there are a lot of rules out there that aren't being enforced. procedures aren't being followed by fbi and law enforcement, additional changes won't any difference, democrats don't

agree with that at all and saying that there are rules need to be changed to take these guns away, back in the senate yesterday, no progress. >> i'm fascinated by this whole thing because nine out of ten americans, more than that actually support stricter gun laws, they want more action done, when we look at immigration debate, there was still 7 out of 10 or 8 out of 10 wantedsome something to be done but nowhere near level support and if democrats and republicans condition get together on this, i'm not sure what they can get together on but my question is, whose going to be blamed, the republicans or democrats, they are coming on the table, saying, republicans are willing to compromise but we are not going to take that in the we add five more things to the bill, i'm curious what you think.

>> we spoke to a senior republican in the senate last week and what we will happen to congress. we won't be able to figure out the same of immigration, they are throwing out their hands, blame game starts, democrats say the republicans will face tougher challenge and republicans say the same about democrats. every day the election is closer which makes me optimistic of any big movement in legislation. dagen: part of the problem is that people who on the right believe in the bill of rights and standby the constitution of the united states, that they are being shamed if you don't agree with these students, in parkland, florida, you support the death of children at our schools and that's the rhetoric that you're hearing out there and quite frankly a lot of the proposals, i'm not talking about fixing the background check system which by the way we had assault weapons from '94 to

2002. gun crime did fall but all the study that is i've read attributed that to better background checks not the banning of few more than a dozen types of weapons in this country, but a lot of the proposals have no evidence behind them to prove that they would work and if you go back and look at the types of crimes that we are talking about, the laws that are being proposed wouldn't have prevented the ones we've had in the past. >> yeah, what you touch on is social media environment, it's about both sides are hard post on their positions and are speaking right past each other. that gets back to what was mentioning delta being attacked for discounts attacked for nra which gives to groups, they have been attacked on social media and rescinded the deal and fedex facing the same thing, exactly same on immigration, the both sides are so far apart and adamant about side it's

difficult to find common ground. dagen: with the issue of the nra, i think that what a lot of companies miss it's not just a few members to have national rifle association, it is the many more in this country who feel like i have a constitutional right to arm myself and ironically enough because there's been such a failure of law enforcement time and again in protecting people and keeping the weapon out of the hands of never should have gotten one like die -- dylan roof that people feel more compelled and i think they are missing the undercurrent in the country. >> incredibly difficult tight rope for ceo's to walk, corporations are being thrown in immigration debates and now gun control, millions of people probably protesting, the nra has

millions of supporters and millions of people support policies and that's a bad place if i'm running a business to be in. >> i can't help to look at this and say that the nra has been equated with all that is evil than saying these are people supporting the constitutional rights. companies are not making decisions based on nra and people they are making decisions on what that symbolizes and i think that's dangerous. >> there's a political pullback, as you will see in georgia, we will go after tax break. dagen: i think we would agree that that's a political overstep on the other side of this, but this comes down to nick, us having to have discussion about mental illness in the country and that's also a civil liberty's question of trying to -- of trying to changing the laws at state level. >> that's something that the president has talked about, we

haven't seen any legislation on that. very closely to see what the president comes out of the meeting if he cuts deal. remember what the president said to governors yesterday, that sometimes republicans have to go against the nra if it's not in best interest. he's probably the only one that can give coverage to republicans to take that kind of step, i will be fascinate today see what comes out of the meeting tomorrow. maria: nick johnston, axios. starbucks 2.0, high-end reboot of the store under guidance of executive chairman howard schultz, we will bring you there live, stay with us.

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exclusive opening today and exclusively to fox business, this is going to be the first of many reserve stores, a thousand to be exact opening worldwide in near portfolio of starbucks futures, what they're looking at starbucks goes a different experience, marketplace, a place where you can come in and order bread, you can have tarts. the bakers are making the strawberry and tarts right now. these will be served later this afternoon. opening here in a couple of hours, what's interesting about this, maria, these are brick and mortar stores, this particular space is 6100 square feet, a lot of brick and mortar commitment. howard schultz is leading the charge, i want to bring in shana mckenzie, she will be in charge of opening a thousand stores worldwide. >> yes, good morning. we are so excited, we will be opening the doors to the public this morning at 7:00 a.m., so we are very excited. cheryl: tell us about the difference between a reserve store and a regular starbucks store, what do you envision

here? >> the difference, our vision is we have platform to show case our starbucks reserve brand coffee and these are small coffee where is you think about this is extension of our reserve premium brand at starbucks and this is the first place where we will be able to show case the coffee along with our italian-inspired -- cheryl:ened i want to show maria this, i know the italian in you is going to love this, the bakery, opening these within the reserved stores but also bakeries in new york, chicago and seattle at some point. this is our bread, pizza, so when you come in, you will be having the coffee experience but also the italian food experience. >> that's exactly right, as you can see, as you look in the the kitchen, we are excited that we make fresh daily everything right here in this kitchen, we have star-rated chefs. cheryl: you have michelin-star

rated chefs? >> that's right. cheryl: real quick, i want to show maria, they will be serving alcohol later in the afternoon at starbucks, i leave you with this, the stock is up 1% year to date, maria, certainly this is quite the challenge and adventure for starbucks but you will be speaking with howard schultz on why he believes in format, this is his baby, quite the opening in seattle. back to you in new york. maria: looks great, cheryl, we are coming up talking with howard schultz the executive chairman, meanwhile dallas cowboys jerry jones could coughed up millions after clashing with commissioner roger goodell last season, details next on the next chapter of public war, back in a moment. we've been helping you prepare and invest for retirement since day one.

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maria: welcome back, dallas cowboys owner jerry jones try today derail lucrative contract extension for roger goodell last year, and now jones looks like he's going to have to pay for it, jared max with the story. jared: reportedly not a fine, the punishment that jerry jones will be asked to pay most against nfl owner. nfl will seek up to $2 million or more from jerry jones as reimbursement for legal cost that is were incurred by the league's compensation committee as a result of jones' attempt to derail goodell contract extension while threatening to sue the league, goodell seeked and not only for goodell contract but running back

ezekiel elliot should not get suspended for domestic violence. yankees fan russell wilson is take up a week-long residency at spring training, this is not a stunt, wilson stands 5'11 with john carlos, russell wilson hit six home runs. what did prince say, let's go crazy, let's get nuts, second year in a row. minnesota twins will honor rock and roll legend prince who died april 2016, he's going to be seen in imagery going forward at target field where merchandise will be sold. how cool, inflatable prince get ors to first ten thousand fans in attendance. i want one. june 8th against angels, they will party like it's 1999. posted a photo with ivanka trump

at ceremonies, she wrote, it's important to remember that we don't have agree on everything to get along, be civil to each other and enjoy each other's company. well, of course, she was attacked for posing with ivanka trump, gibbs removed the tweet and over four hours ago put this one up, i deleted the photo because i was tired of hate being thrown back and forth, whether you hate me for posing or taking it down, you're the same, hate from either side is hate. interesting. we talked about the other side of lindsey vonn because she was critical of president trump, now we see it on the other side no matter what. maria: she deletes the photo. >> she gets attacked for saying let's be civil to each other. >> whole new level of -- >> so much anger. dagen: i posted on twitter and

facebook page, somebody opened an account to harass me on on instagram and posted me photos of me and my dog, somebody targeted me, you know what, twitter, facebook, instagram, they don't do anything about it and it is hate speech. >> it is. dagen: they don't care. jared: hopefully changes because it's only going to get worse. maria: catch jared fox news 24/7 or siriusxm 115. faith and family, how the two merge in her brand-new book series for young girls next hour mornings with maria back here in a minute. most people come to la with big dreams...

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- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. >> maria: welcome back. good tuesday morning. thanks for joining us. um maria bartiromo. it is tuesday, february 27th. your top stories right now, 7:0. seeing green, the dow industrials closed higher for a third straight session yesterday, up nearly 400 points, 1.5%. nasdaq was up 84 points, better than 1% as well. the s&p 500, same move, better than 1%, 32 points higher. this morning we're looking at a pullback. we've got futures indicating a flat opening for the broader averages, dow jones industrial average expected to be down 60 points. investors are waiting on remarks from jake powell as he prepares to testify today. >>today.we'll have live coveragf

chairman powell's testimony. we will also have his advanced remarks at 8:30 a.m. so keep it right here. we're going to get those remarks at 8:30 and go public with them. in europe this morning, markets are mixed. sq100 down a fraction. dax index in germany down 1/2 of 1%. in a asia, stocks were mostly lower at the close with the exception of japan. it was up more than 1%. the battle over the nra as georgia vows to block tax breaks for delta airlines after it severed ties with the nra. fed ex said it will keep discounts for members despite calls for a boycott. >> there's no bigger than of the second amendment than me and there's no big fan of the nra. they're great patriots. they're great people and they want to do something. >> maria: the latest as president trump plans to meet with a bipartisan group of lawmakers tomorrow. terrifying moments aboard a southwest or line a airlines flr

utah. an engine fire forced the plane to make an emergency landing. sam's club teaming up with insta cart. what it means for the company. a short stack could lead to a big change, i-hop's free pancake day, delivering a sweet treat to a charity for children. it is national pancake day today. joining me to break it down this morning, fox business network's dagen mcdowell, john hildenrap and lee carter. >> dagen: great to be here this morning. >> i wouldn't have grabbed the bagel if i knew it was pancake day. >> maria: cakes arpancakes are e way. >> i want to say one thing about the powell testimony. at 8:30 the testimony comes out. between 10:00 and 11:00 this morning, he gets the first questions. that's the window when market moving stuff usually happens, the first suc couple questions d

chair gets from committee members, that sets the tone for where they see rates and where they see the economy. >> maria: we'll probably see a change in futures once the news hits at 8:30, right, that's when the em bay grow i -- embargo is up. >> that's the prepared remarks. they have the questions between 10:00 and 11:00. >> maria: a lot of talk about gun safety this morning as well. we're talking this morning with starbucks' executive chairman howard schultz as well as herman cane and ken paxton is here. also with us, brad shimel and missy robertson is here. we have a big show coming up. stay with us. we want to kick it off here, president trump will meet with a bipartisan group of lawmakers tomorrow to address gun vie license, this comes after the president urged congress yesterday to pass legislation that would ban bump stocks and

strengthen background checks. >> bump stocks, i'm writing that out my c i don' -- writing that. when we see somebody sick like this guy, when the police went to see him, they didn't do a good job. they have restrictions on what they can do. we have to give them immediate access to taking the guns away so they don't just leave. >> maria: house majority leader kevin mccarthy joined us yesterday. he said focusing on the background check system was key. >> that is actually sitting in the senate today. but what's really important is a part of that bill that fixes the nicc, the national instant criminal background check. had that worked, that shooter in texas would have never had a weapon as well. >> maria: the new background checks bill ran into hurdles across the aisle. democrats are worried the measure won't reduce gun

violence. conservative republicans are concerned about how people flagged in the system could appeal. let's bring in texas congressman louis gilmart right now. let's talk would the bill. are you supporting it? >> it reminds me and we're hearing this from a lot of sectors, here i've got a meaningless ineffective bill that wouldn't have stopped the tragedy, here, take mine, it's ineffective, it wouldn't have changed things. what would change things is if we would require when somebody is involved in an assault, they get an arrest record. they get charged with something. those are the things that will show up. but otherwise, we're going to have another meaningless, ineffective effort of taking away somebody's rights. in fairness, john adams said this constitution was meant for a moral religious people. it is totally inadequate for any others. so either we've got to get back

to teaching morals and if religion is the best at doing that, as most of the founders said or we have to take away people's constitutional rights one at a time and of course we're doing that here. >> maria: what are you saying? are you saying you want the background checks to be strengthened? you don't want anything else attached to it? >> the background checks could be strengthened but they're still not going to show anything, maria. that's the thing. this school did not report the assaults. they were in their sweet by and by and they were saying, no, let's mediate. let's don't arrest somebody for n a assault. -- for an assault. let's don't let them have a conviction on their record. they were avoiding anything being on their record. sure, have a thorough background check. what would it show? nothing, because the school would not allow the assault to be on the kids' records.

it won't make any difference to do that, in other words. >> dagen: not in this case it wouldn't have prevented cruz from getting a gun. >> then why are we doing it if it's not going to stop the tragedy, then why do it other than to feel good? >> >> dagen: it would have prevented other mass shooters in recent history from getting weapons. >> like what. >> dagen: the shooter in texas. >> that wouldn't have shown up because the air force didn't -- >> dagen: i want to explain for the audience, there was a court-martial for domestic violence that the air force didn't report. >> wouldn't have helped. >> dagen: but this bill would improve the reporting to the states and the military. the shooter in charleston, south carolina should have never been able to purchase a weapon because of a hole in the background check system where the investigator didn't bother to get the man's police record.

so if we can fill some of these holes, history show these guns would have been kept out of the hands of some mass shooters. >> if they had done their jobs and followed the law as it was, they wouldn't have been able to get the guns. so just adding more laws to laws that were not being followed to begin with, like the air force, i don't see how that's -- if they can ignore one law, they can ignore two laws. >> maria: what are you prepared to do? this is maria. what are you prepared to do? >> we make people follow the law. one of the things that i think should be required is, if someone commits an assault, there needs to be a record. now, that would clearly make a difference. and apparently we've got school systems that are following the obama lead. let's don't give them arrest records so it doesn't show up on their records. well, we need -- i think we do need a law that says if you're involved in an assault, it needs to be on your record.

let's get those as convictions and then if you want to have them revisited down the road, that's fine. knock out the conviction. we'll take it out of your record. but you should have a conviction if there is an assault there. that would be effective. >> nine out of 10 americans, more than nine out of 10, 94% of americans are saying congress needs to do something about this. we need to stop this. there's too many -- >> something ineffectual, yeah. >> you're saying this bill isn't going to be enough. there's going to be gridlock on this. how is it possible that at this time, when the american people are demanding that you guys do something, that you still can't get something done? who is going to make the first move here? >> i do want to do something, but i'm saying these bills that people rush forward with, here, let's do mine, here, let's do mine, and you go well, it wouldn't have stopped the tragedy. it doesn't matter. america wants us to do something. maria, you of all people, you understand how -- what an

ignorant approach to government that is. we need something totally meaningless, inevidenceing inefh comedian said i don't care if you do something wrong, just do something. that is absolutely absurd. >> maria: so should you do nothing then? >> no, i'm telling you, i think we can do something. >> maria: what. >> we do need to require, when somebody commits an assault, it needs to be reported in their arrest record and we need to have that brought forward. >> maria: there's two different conversations here. we're having two different conversations. i don't think we're disagreeing that when there's an assault it should be in the record. >> there's a lot of people -- maria, schools across the country took their lead from the obama administration. let's don't give these people an arrest record. let's send them to mediation and that is what happened with nick nikolas cruz. >> maria: >> maria: here's da dagen da you

sadagen.>>. >> dagen: you said you want more arrest records but they those are not reported to the database, so that is irrelevant unless we do more to improve the background database which is what the cornin bill wants to do. did you vote for the bill? it was in the house. it had attached to it re reciprocity across state lines in terms of carrying weapons. did you vote for it when it had that reciprocity attached to it? >> i voted for reciprocity but i did not vote for the niccs fix. it was going to and will allow the obama executive order to continue, where if somebody helps you with your checkbook, then you don't get to have a gun. i know a lot of seniors that get help on their checkbooks. >> dagen: that was rescinded by you guys earlier last year.

>> no, it isn't. it is going on right now. the v.a. continues as of last week to report people that are not taking care of their checkbooks and they are with drawing their ability to have a gun. that is still happening and this cornin bill will continue to allow that to go forward as it is. and so no, it's still going on. >> maria: are you going to be at the meeting with the president tomorrow? >> i'm not sure. i can tell you, it goes back to what should have happened during the obama administration. we need to put all kinds of pressure, even withholding federal funds, if you do not enforce the law, if you do not follow the law. that needs to be the trick. we know the obama administration enforced fewer gun violations than any administration ever. it's time to enforce the laws. >> maria: i don't understand why you would be against the niccs bill. i don't know why you wouldn't

want stronger background checks. >> due process, taking away someone's constitutional right -- do you know, when we asked the obama administration, wait, how do you get on a no fly list, now how do you get on this no gun list, they couldn't tell us how you got on. they couldn't tell us how you got off. they couldn't tell us what the appeal process was. those are issues, i mean, if we're going to go ahead and refuse to be a moral, religious people, then we're going to have to take away the second amendment. it's one or the other. we could enforce the law as it is and these tragedies would not happen. we see it over and over and that sure happened in broward county. they ignored the law on assault and allowed this guy, troubled as he was, to continue down the road to killing 17 people. it should never have occurred. not to mention, people that don't know about running in and protecting others. and by the way, to law enforcement around the country,

every time it seemed like, until broward county, we saw a gun incident, i've seen the video, i saw it in my home county, our law enforcement run to the sounds of the gun and any sheriff that, whether it's director indirect leadership, leads his deputies to hunker down behind a gun instead of saving people, he needs to be gone. >> maria: congressman, thank you. >> always good to be with you. >> maria: thank you so much. still ahead, a new perk from sam's club to take on the growing competition from amazon and whole foods. then savings that really stack up, how i-hop is celebrating national pancake day this year. wait until you see it. back in a minute.

>> maria: welcome back. a major media deal wins government approval. lauren simonetti with the details. >> lauren: the department of justice is approving discovery's proposed acquisition of scripps network. the company expecting the $12 billion deal to close this quarter. discovery announced last summer that it reached an agreement to acquire scripps networks in a cash and stocks transaction. the deal brings together animal planet, food network, cooking channel and hgtv under one umbrella. take a look at share reaction for discovery communications in the pre-market, up 2.8%. there's also this, a plane packed with passengers lighting up the sky over utah after its

engine explodes. the southwest jet's engine, take a look closely, it burst into flames minutes after taking off from salt lake city, headed to los angeles. the flames were so big that people standing on the ground could see. that plane was packed with more than 100 people. it was forced to turn around and make an emergency landing. fortunately, nobody was injured. southwest is calling the issue with the right engine a, quote, performance issue. we're taking a look at shares of southwest. they're up 0.2% in the premarket right now. well, germany's top administrative court ruled that cities can ban diesel cars, a move to help reduce air pollution. this could affect millions of drivers in europe's largest car market and require the automakers to pay for any costly modification. if you recall, volkswagen admitted to cheating on diesel emission tests, that was back in 2015. how pou about this. your sam's club order at your

doorstep in an hour or less. walmart is partnering with insta cart to give sam's club members same day delivery. it doesn't require a sam's club member ship but it will carry instacart's standard fee before the service expands across the country. shares of walmart up about 30% from a year ago. nice start in. and it is national pancake day. i-hop is -- i love when the national day is about the best food ever. they're continuing their tradition of giving out free stacks of butter milk pancakes to every single customer who walks in from now until 7:00 tonight. the pancakes are free. eye hoi-hop encourages customero donate to charity. they a ai aim to raise $5 millin

this year. shares of parent company, diamond brands global, they're up 20% in the past year. are you guys digging in? can i come over there? >> maria: come on over. i have the syrup here. look at this stack. >> look at this. boisenberry. >> dagen: is it wrong to just drink the syrup. >> i dare you, dagen. >> this defies the laws of gravity. i don't know how it's standing. >> i want to take a picture of you guys. i never had boisenberry syrup, have you. >> maria: no. >> dagen: i just like saying rooty tooty, fresh and fruity.

>> all day long. >> maria: so how do you get some free can cakes? >?-- free pancakes? >> you just walk into a an i-hop. they encourage you to leave whatever you want and they will give the money to charity. >> dagen: and tip your servers always, well. >> and ask for extra syrup. >> and different flavors. >> maria: go to an i-hop. thank you, i-hop. >> this image is hilarious. >> maria: cool stack. coming up, invest like a millennial, what companies are attracting new attention from the younger generation. and then brewing something new, starbucks is opening its doors to the first store dedicated to the premium reserve brand. we'll take you to the new location in seattle, live. we'll talk to the executive chairman, howard schultz in a moment. we'll be back on national

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>> maria: we want to bring you breaking news. sky is issuing a statement on comcast. $31 billion offer, saying in part no firm offer has been made at this point. shareholders are advised to take no action. a further announcement will be made as and when appropriate. this is from sky. shares of comcast this morning are down 2% as you can see and as we told you earlier in the show, comcast is trying to bufft up fox's plans by maining a bid for -- making a bid for sky. sky says no firm offer has been made at this point, advising shareholders not to do anything. millennials and market, beginning to make their mark on investments. 86% of millennials are interested in socially responsible investing. joining us now, the author of "retired inspired," chris hogan. chris, good to see you. >> good morning.

>> maria: what types of investments fall into this category? >> well, as we start to look at it, maria, it's really every type. the bottom line is, you start to pick and invest in stocks, mutual funds through your 401-k or your 403-b with companies whose values align with yours. millennials are starting to take a look at this. they want to know what are the company's initiatives, what do they stand for and what are they about and they're using that as they assess whether they'll choose to invest in that company or not. >> i've got a question about this. i do a lot of research with millennials. they are so interested in the good things that companies do. what are they looking at? what are the fundamentals they're looking at to figure out what are the companies that are worth investing in? is it just what they feel are the companies that are doing right or are there resources they're turning to? >> i don't think they're necessarily diging into a prospectus or the corporate guidelines. i think it's more about what's going on in social media, the

things that are happening in the news, and the general overall feel about how this company is portrayed in the public. and i think this is a wake-up call for companies to be aware, how are they approaching education, how are they approaching environmental issues, how are they approaching social issues because millennials are taking notice of this and using it as a factor. >> doesn't this raise a question of whether -- is this the right way to invest? i mean, if you want to take up social issues, go ahead and take up social issues. isn't investing supposed to be about securing financial future and finding companies or other investments that offer the best returns for the lowest risk? should you really be putting your social standards on the line when you put your financial future on the line? >> well, you raise a good question and i agree. i think what you don't want to do is to allow your investing to become overly emotional. this is a business decision. you want to make choices that obviously fit in with your values and your beliefs, but you

have to be careful. you need to understand what it is you're investing in and how it's going to perform for you in the long term. and so while i think it's something to be aware of, i think they need dig in and they need to go deeper into information than just based on what's happening social media or online. you have to understand what you're investing in and how is it going to perform for me in the long term. >> maria: what are some of the other stocks that are attracting millennials right now? >> i think anything that they're familiar with. i think as you start to look at the companies, products and services that they use, i've read some articles that mention dominoes and mentions facebook and all of these areas. i think it's typically a matter of popularity right now. but also, maria, the things they're using, the products they believe in, the products they're familiar with and they they've grown up with, people armor apt to stick with those in the long-term. >> dagen: one note of caution, and i figure you might agree with me on this, that there is a tendency to invest in the

hottest brand and it turns out to be a fad and it blows up in your face. have you to be careful about that. a lot of these businesses are not long-lasting. >> no, i agree, dagen. you do want to be very, very aware. investing is a business decision. you need to be careful of trends and fads because typically as people join in those, that's when they start on the downturn. you want a long-term view. i tell people all the time, save for things three years or less, you want to invest in things five years or longer. we have to get the right information, get the right people around you, and make choices you believe in and you're going to stick with in the long run. >> maria: chris, always a pleasure. good to see you, sir. >> thank you. >> maria: coming up, remembering the reverend billy graham. thousands gather to say good-bye to the beloved evangelist. how his close friends are ensuring his legacy lives on. back in a moment right here.

>> maria: good tuesday morning. welcome back. thanks for joining us many i'm maria bartiromo. it is tuesday, february 27th. your top stories right now, 7:3. stocks are rallying this week. take a look at yesterday, starting off strong, dow and s&p 500 climbing for a third day in a row, up 400 points yesterday. with yesterday's gains, the nasdaq has completely recovered from the selloff earlier this month. the nasdaq with an 84 point move yesterday. this morning a bit of a

pullback. futures are down about 30 points on the dow jones industrial average. investors are waiting for testimony from jay powell. we are bringing you live coverage of the chairman's testimony beginning at 10:00 a.m. eastern. before that, we'll have his advance remarks at 8:30. we'll bring you those remarks, his prepared speech at 8:30. be here in one hour's time for that. global markets this morning look like this. in europe, major indices are fraction naillfractionally movi. dax index in germany down 1/3 of 1%. in asia overnight stocks closed mostly lower with the exception of japan. the nikkei average in japan was up better than 1%. we're following the major news on wall street this morning. comcast is challenging fox's bid for sky broadcasting with a $30.9 billion offer this morning from comcast. the british broadcaster says no formal offer has made yet and they're advising shareholders to

take no aca shun. there's this, starbucks getting a new look with their reserve stores. the first one in the united states opens today. we'll take you there. we he have an exclusive look in seattle. cheryl is there and we will go as well. remembering the reverend billy graham, president george w. bush among the thousands of mourners paying respects to the religious leader yesterday. more expected today including president bill clinton. first, though, this, determined deal making a record number of companies are planning to divest according to e wise global corporate investment study. 87% of respondents say they're planning to divest in the next two years. joining us is paul hammond. good to see you. >> thank you for having me. >> maria: why are divestments higher on the list of corporate priorities. explain a divestment. >> a divestment is a sale of assets or a monetization of assets, often that are considered non-core for an

organization, a corporation. very often a carve-out. we're seeing a couple things that are really driving that increase, because this is really an increase that's nearly double, over double what it was last year, 87% divesting versus 43%. number one is technology. technology out there, maria, is basically-it's transforming companies' business models. in many cases it's disrusting their business models. companies are conducting portfolio reviews, determining what's core, what's non-core, they're divesting the non-core assets and they're investing in technology. in our survey, nearly three-quarters came forward and said technology is driving divestments. it's important to understand the impact technology has on your company. nearly half that do that basically get an increase in their valuation multiple after they close which is outstanding. >> maria: which is what they want. >> the tax bill last year gave companies incentives to write off old investments or new investments. are you seeing that changing the

business strategy as relates to getting rid of old assets that some other company can take them and write them off right away? and there's also tax laws that relate to bringing back money overseas, is that changing divestment strategies? >> look, the corporate tax rate, 35 to 21, to your point, the ability to expense these assets that are put into service, the elimination of corporate emt, the ability to bring cash over, less incentive to hold it overseas, these will all drive economic growth. our respondents in the survey basically came back and said these things are going to be a factor, but that's what they are. they're factors. they're not going to be drivers of deal activity. deals are done for strategic reasons, period. >> maria: if you have more cash on the balance sheet as a result of the tax a plan and you've been wanting to do a certain deal, you're more poised to do it now that you have the money on the balance sheet. >> absolutely. >> maria: there's a connection in terms of the tax plan. >> it's a fact to. it'factor.it won't be a key dri.

>> we're talking about a lot of companies going out and doing a lot of deals right now with capital so cheap and with the tax cuts. you're talking about them divesting. how does this fit together, the idea that companies want to spin off bad assets but we're seeing so much deal activity. we've been talking all morning about the comcast bid for sky. >> if you think about it, some of these assets are orphaned. some of these are assets that have not been invested in, possibly because of they've not invested for -- or in accordance with investing in tec technologr that particular business. it's time to move forward. people don't divest to shrink. they invest in tend to degree. divestments are a strategic part of your capital agenda. companies step back, look at their portfolio, determine the businesses they should be in versus those that aren't and they determine what they'll do with the capital and that's driving the activity. >> dagen: how much of this changes with the ceos, that one

ceo has a vision for the company and you load up on assets and then another ceo comes in and decides, well, we don't want to be in this business any longer? you could use ge, but arguably with a different ceo, somebody could have run the company that jack welch built. >> maria: another thing that acselaccelerates the divestmente activist. tryon was saying do this or do that. they got in at 25 or something. when you've got activists investing which has increased, that's going to put pressure on whether it's the new ceo or current management to do a divestment. >> that's absolutely right. that's one of the top five drivers in our study. >> maria: activist investment has risen. the activist fund hasn't been doing well the last he'l couple years. the prior two years, the activist funds did not perform well. >> absolutely. to your point, a lot of these divestments will be akin to the

corporate strategy that's put into place by the c-suite. that can change, with a change in ceo, no question. >> we saw a lot of this in financial institutions after the crisis. what industries are and what sectors are you seeing it in now? >> we'll see it in four sectors in the coming year, in the coming two years. life sciences, consumer products and retail, technology, and industrials. >> maria: they're motivated to discard sluggish assets in the portfolio when the stock doesn't move, when shareholders start getting upset. >> absolutely. absolutely. no question. and that will continue. >> dagen: are these red flags where it points to a c-suite and ceo who doesn't know how to produce organic growth, where you have an asset or a couple assets within a larger corporation that doesn't perform and it's because they just -- they can go out and buy growth and they have to turn around and sell it when they can't continue it. >> certainly that could be a factor here. but there are also times when these assets, they just can be

orphaned. somebody decides that's not part of the strategic priority. that's not core in the business portfolio. the businesses in question are being divested haven't gotten the right level of investment. >> these are often companies that made bad decisions in the past. >> it can be. >> we're talking about turnaround stories for the most part. >> i don't think going forward that a lot of these are necessarily turnaround stories. some of them can be. i don't disagree with that some of these companies changed their strategy. some of these assets have been orphaned. there's a focus now on what that new strategy would be and building up the portfolio in relation to that strategy. >> maria: we will leave it there. paul, great to see you. thanks so much. coming up, remembering an american icon, thousands of people gathering to say good-bye to the ref repped billy graham. how his friends are honoring his legacy coming up. a whole new reason to wake up and smell the coffee. starbucks is opening its first store for its premium reserve brand. we'll take you live to the program later on. i'm talking to chairman howard schultz in an exclusive

interview about the company and the new store. back in a moment. ♪ baby are you down, down, down, down. ♪ baby are you down, down, down, down, down. ♪ mvo: it's not necessarily about eating together, but it's about building relationships with one another. because that will manifest change. ♪ i'll stand by you. mvo: anybody can make a difference. it's easy to give back. it's just a little bit of time. ♪ ♪ i'll stand by you.

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>> maria: welcome back. starbucks is opening its doors to the first reserve store today, a new store dedicated to the company's people sum he reserve brand. cheryl casone is live in seattle. she has an exclusive look right now. >> cheryl: i'm not sure if i'm in a ski lodge or starbucks right now. i'm in the first reserve store that starbucks will be opening worldwide over the next couple years. here's something you don't see every day in star buck starbucka menu. the company wants to make this more of an experience, a marketplace, if you will. they hired one of the most incredible designers in the

world, kristin daveys. you wanted this to be a marketplace for people to hang out. what was your vision? >> it's a fully immerse i've experience around reserve. we want toded to create somethig that was unique that felt like starbucks. we have community elements. >> cheryl: walk me through and show me what the plan was here and how this is supposed to be different from the regular starbucks, you go in, you go out, that's it. >> this is our long bar, the longest bar we've built. we have all of the coffee elements running down this bar, from pour over to espresso, full mixology at the end. >> cheryl: as i leave you here, i want to walk over and talk to danny who's -- i'm calling you the senior bay ris barista of te morning. this is something i've never seen at a starbucks. it's a siphon or siphoning. you tell me. >> it's a coffee siphon. it's one of the many coffee

brewing methods we have. what's nice about this method, it creates a tea-like quality to the coffee. >> cheryl: show me how this works. i'm trying to wrap my head around how this is going to become coffee. >> it's a dual glass chamber. right now i'm waiting for the water to get to the right temperature. once i see the bubbles, i will close the top gasket. that forces the top water up to the top chamber and that's where i brew the coffee. i add the coffee grounds and it will brew for about a minute or so and then after that i'm going to remove the heating element which will create a vacuum effect and pull it through the paper filter. >> cheryl: the coffee will come up into this chamber, that's going to be heated and it comes back out. >> yes. i'll slow this. >> cheryl: let's get this going. i'm still confused bout ho abouw this works. >> we're using micro bend 21, it has hints of candy, oranges and

chocolate. >> cheryl: here you go. this is siphoning is something we've never seen at a starbucks. these reserve stars, you've got the bar down here, it's a whole i'm he -- immersive experience. i have croissants i have to dive into. >> maria: you said there was a whole new brand in terms of italian breads and you said croissants but there's a whole-you showed us earlier the italian breads. >> cheryl: i think they're called -- what are these again? >> cornettis. >> cheryl: an i'l ital jen versf a croissant. it's got your name all over it. >> maria: we just had pancakes. i'll speak with howard schultz coming up in the next hour, right here, "mornings with maria," we'll take a break. when we come back, duck dine

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>> maria: welcome back. remembering the reverend billy graham, thousands of mourners including george w. bush yesterday gathered pay respects to billy graham in charlotte, north carolina. joining me right now is co-author missy robertson as long mia robertson.

thank you for joining us. we want to talk about the new books. first, your family was close to the late reverend billy graham. how important was he in your life? >> well, we didn't know him personally. i think that maybe some in our family had met him before and i had met the family. but his influence on americans in general and all over the world, amazing. his faith was very out there and but in a loving way. and i was privileged to speak at his library a few months ago to a group of women and i learned a lot about him at that library, humble, humble man. >> maria: what was it about him that had such an impact for so many? >> i think it's the humility. he was always pointing himself away and pointing others to christ and that's what his legacy was. it was not about him. and that's what jesus wanted to do too. it's not about us here on earth but it's about his kingdom and expanding that and let's all be

together forever, not just about this life here. >> maria: that's why we're going to continue following, so many people who are gathering to remember him and keep that legacy alive. it's already so incredibly strong. >> yes. >> maria: let me switch gears and talk about your books, you co-wrote "princess in camo" you wrote the books together. this is a series centered around preteen girls and rooted in faith. why did you do these books? how fun was it to work with your mom, mian. >> it was really fun. we disagreed on a little bit of things but it was really fun to see how it would turn out. >> maria: why did you do this series? >> having a daughter and understanding the ups and downs, the challenges that they face, it's very different from having boys and i had two boys before. so the challenges are different. there's a lot more drama with girls than there is with boys and you always are looking for ways out there where you can

challenge yourself in order to be a better parent. these books are about-they have different values. there's four in the series. the first one talks about how to accept others, flaws and all. and it's based on our family. mia, the main character is based on mia and owl o all of the cuss surrounding in the family. a few years ago we had a brand-new cousin that joined our family. hunter is portrayed as him and how they had to accept him into the family. the principle is that god accepted us, flaws and all, into his family and so if we keep that perspective in mind, it's a lot easier to be merciful, to be kind, to understand that if you want the same things portrayed about you to other people and the mercy given to you, you'll

extend that to other people as well. >> maria: so mia, huh to look within, look at your family. this is based so much on things that you knew. >> yes, ma'am. >> it was really a fun -- when i think about some pro mice, there were things that a character -- you want to root for that character. i wanted her to keep her -- alley to keep the chest palate. i was proud of how she overcame the struggles. she looked at he me and said no, mom, i don't want that. do you want to say what she chose as the struggle? >> alley has allergies to nuts and many other things. she has to get through not eating nuts or she could possibly die. so she's just making sure that she has to be really careful, whatever she does. >> maria: which is also a real reality. >> yes, absolutely. >> maria: you've done so much, missy post the reality show, whether it's the jewelry line,

books. what's next? >> again, all these opportunities are out there. we try to be very prayerful and choosey, picky on things like that. that will just enhance our family and make sure that we're doing what's best for ourselves and our family. we want to shine the light on jesus christ. that's the main thing. when i think about billy graham and i think about all of the things that are surrounding all of the controversies that are going on right now and the -- just the terrible shootings that are happening and i think what would reverend graham have said and it's about people's hearts. she wants people's hearts to change. we're all about trying to do that for ourselves, our children and the people around us. >> maria: thanks so much. congratulations. millsy an -- missy and mia robertson. we'll be right back.

maria: welcome back. good tuesday morning. thanks so much for joining us. i'm maria bartiromo. it is tuesday, february 27 top stories 8:00 a.m. on the east coast, the rally was strong yesterday, take a look where this market begins this morning, dow industrials up 400 points yesterday, a third straight session of gains, nasdaq up 895 points bettered than 1% futures showing a pullback after that big performance yesterday. dow industrials in this morning, down 20 points nasdaq also down 10 points this morning s&p 500 weaker by a fraction. investors waiting on key

remarks newly minuted chairman of federal reserve jay powell will testify today fox business taking you live we will bring live coverage of chairman powell's testimony 10:00 a.m. or an before that we will have advance remarks 30 minutes from now stay with us we will have remarks prepared statement, at 8:30 a.m. eastern, they could be a market mover stay with us, european markets are mixed take a look at indices down fractionally ft 100 cac quarante. dax index although dax index off worst levels of the morning down a third of a percent. >> m asia overnight stocks mostly lower exception japan nikkei average up better than 1% battle over nra georgia vows to block tax breaths for dealt after it severed ties with nra will fedex will keep discounts for members. >> president trump slammed some first responders to

shooting in florida calling them cowards said he woef taken action if he were in their position. >> i really believe you don't know until you test it but i really believe would i run in there even if i didn't have a weapon. i think most of the people in this room would have done that, too. because i know most of you. maria: very latest commander in chief prepare to meet with bipartisan group of lawmakers tomorrow, to address gun violence comcast trying to bust up fox's plans making offer company bid nearly 31 billion dollars to british broadcaster sky -- higher than approachable from 21st century fox parent company of this network says no formeral office yet revive shareholders do nothing what could it mean for fox and denies this morning comcast shares down 2 1/2% obamacare, details 20 states sue federal government, hillary clinton blaming social media for failed presidential

bid, all those stories congress up this morning joining me to he can bra it down fox business network dagen mcdowell, "the wall street journal" global economics editor jon hilsenrath president, of pollster lee carter good to see you. >> great to be here. >> hillary is out there says facebook's fault. >> easter bny tooth fairy look out. >> she is going through final stages of grease so slowly. >> feeling denial a long time sitting there. >> angry? >> we got to keep talking about this you too much this morning i speak ask exclusive with executive chairman of starbucks joining us this morning, also the conversation former republican presidential candidate herman cain, texas attorney general ken paxton wisconsin attorney general brad here as well host of "varney & company" stuart varney will weigh in as well don't miss a moment of it, kick off right here with this president trump is set to meet

with group of you bipartisan lawmakers tomorrow, to discuss ways to address gun violence through a bill strengthening background checks already facing stiff hurdles in congress you heard gohmert early blake burman at white house covering the story with the very latest good morning. reporter: tension on capitol hill, about how to go about strengthening the background check system the bill currently talked about what it does encourages government to pass along criminal records, through the background check system, and punish them should they fall short of that requirement already there is opposition, in the senate just to give you a couple names, mike lee, rand paul, head of the house freedom caucus mark meadows concerns how those would be able to appeal chuck schumer wants more if all congress does, then it would be an abject failure.

>> if we only pass this we will be right back here after the next shooting, nearly same place if all congress does in response to the parkland shooting is to pass this we won't be doing our job. of them we must do much more, than that. reporter: in front of 38 grs yesterday white house president trump reiterated call to arm some teachers did not raise raising ownership to 21 years old white house insists president has not softened on that position he called the broward county resource officer did not enter stoneman douglas high school a graif the president suggested that he would have run toward the gunfire. >> you snow i really believe you don't know until you test it but i think i rereally believe would i run in even if i didn't have a weapon i think most people in this room would have done that, too, because

you know most of you. reporter: so far president trump already met with students parents teachers, state and local officials governors yesterday here at white house, what amounts to three different listening sessions so far. tomorrow, he will meet with lawmakers here in washington as well, if anything were to get done legislatively, that is the group that could do something. maria: blake we will watch important blake burman white house joining us right now former republican presidential candidate fox news contributor herman cain good to see you, sir thanks so much for joining us. >> thank you very much before you get started are where are my pancakes? >> [laughter]. maria: you got to -- >> those big -- pancakes where are my pancakes go ahead, maria. maria: you are right we have we are sening a stack to your home we will tell ihop get. >>hop on case what do you think needs to be done if you heard our interview this morning, with louie gohmert

freedom caucus said he is not voting for it, why should we affect people's rights, but the democrats are saying they want more, so where do you stand on this? >> the democrats always want more which is why nothing ever gets passed. but here is what most of the people babbling about this are missing we need more enforcement not more laws, but we need to tighten up the laws that are already on the books. secondly, the national rifle association and the administration and president are willing to look at some of those items that are on the table. so we need a comprehensive review of everything that can be done, and then a third point i want to make, the national rifle association is the only association organization in the country that provides more gun safety programs than anybody else.

and they also have a school safety program called school shield you don't hear anybody talking about that you hear people talking about, the various sound bytes and sound bite does notproduce legislation, a comprehensive review can tighten what is already on the books. >> you know what now you've got companies trying to say it is the nra's fault really you unfortunately, now this reciprocity bill, moving here, is also front and center i spoke with new york district attorney last week, cyrus vance, having this as key issue, reciprocity bringing guns over state lines wher is what he said about having a gun elsewhere being able to bring it into new york, watch. >> people bring concealed gins where they lawfully possess from all over country would be legal in new york city the difference is let's continue no permit requirement to get a

gun makes sense to west virginia rural environment new york city has some of the off toest gun laws in the country we understand, that people with loaded guns in city a whole different level of danger than rural area doesn't make sense in new york concealed carrier reciprocity act would force new york abide by laws of rural states. >> what do you think herman. >> i think it is a talking point, there are a lot of things on the table. that the republicans and the administration and the president and some democrats can agree on. of them why not look at those first? and tighten the laws that are already there including some of the things that people talk about relative when you try to put everything on the table, it is a recipe for not getting anything done. this president wants to get something done. and you are going to have to take a comprehensive view, rather than trying to say

legislate based on a sound bite. >> i appreciate all that i i know american public is demanding that congress do something nine out of 10 americans say do something while we have to look at things your comprehensively while we have to have a rules that are on books, they want to see us act as one, they want the see republicans democrats come together make comromh compromise at at least something whether do they start. >> lee you are right start with school shields program nra already has. most people don't know what is in that. that is a comprehensive approach and the nra has said they will provide that program to any school in america free of charge. you never hear about that. and american public doesn't hear about it i just found out about it yesterday. and that is where they ought

to start, and that would give the american people in my opinion come for the something can be done. >> is there an agreement at this point, that something does have to happen i want to throw in a to lee carter you say your survey shows this is this turning point in well have a debate finally everybody is saying we have to do something it is just a question of what is it going to be? >> well -- >> i believe i am sorry lee. >> go ahead. >> i believe something should be done and something can be done, but start with what we know. unfortunately, you don't hear any rhetoric talking about things that we already know and the things that we have already done. and as many people pointed out enforcement should be a big part of this look at enforcement because weighed failure of enforcement more than a failure of the laws just passing more laws isn't going to do it so, yes,

something should be done but start with what we already know, and programs that the nra already has out there, let me go back to the another point real quick companies overreactinging, and trying to blame nra, that is foolish. because you are now trying to blame the lead organization that supports gun safety all over this country provides training, to anybody that wants it, and they have a school safety shields program so it is foolish for them to overreact to court of public opinion. >> in your home state georgia lieutenant governor threatening to kill tax cut for delta air also because of that delta cut discount program for nra members same day fedex said its keeping nra

discounts also took unusual step coming out against nra gun policy. >> we can't react to sound bites, that is what unfortunately, some airlines car companies are doing, lubricate governor is saying wait a minute. we are going to provide tax breaks for you because you are here this is your hometown. and you are gonna react to the court of public opinion rather than react to facts? i think that is a legitimate issue that he is raising. >> all right we leave it there herman great to see you, sir thanks so much. >> happy to be with you don't forget to send me pancakes. >> pancakes on the way herman cain we will see you soon thank you. >> thank you. maria: we'll be right back stay with us. from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

a statement this morning, after comcast made ununhis veryisted surprise bid to acquire company nearly 1 billion dollars. >> sky is reviving shareholders take no action, quote since no firm offer has been made, at this point, comcast is offering about 31 billion dollars for the british broadcaster that does have a rival bid. >> sky is very valuable piece of pending 21st century fox-disney deal gives more sez to the european market taking a look at shares of comcast lower 2 1/2%,with 21st century

fox fox, of course, is apparent company fox business network up over 20% past year with walt disney co iger declining to component on bid for sky, taking a look at disney shares, right now, they are down 12.2% okay monica lewinsky speaking out about her relationship with former president bill clinton. in article for vanity realizes the relationship was gross abuse of power i quote he was my boss most powerful man on planet 27 years my senior, with enough experience to know better he was at the time the pinnacle of this is career, while i was in first job out of college, lewinsky's essay comes as 20th anniversary approaches when that came to light. >> bill clinton wife former

democratically presidential nominee hillary clinton just made transition right warning about social media tweeting we should all care about how social media platforms play a part in our democratic process, because unless addressed it will happen again, if midterms 8 months we owe it to democracy to get this right, and fast. the tweet came after claim made by the trump campaign incidentally media director said they had dramatically bettering spending than the clinton campaign. >> thank you so much this what walked me up now looking at facebook saying facebook fault about what happened. >> why i said easter bunny and tooth fairy look out sheems coming for you next everybody else's fault but hers. >> a battle over obamacare continues i speak with two state he attorneys general taking legal action back in a

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maria: welcome back we have seen pullback in markets this morning in about nine minutes' time we will get the very latest that we will see on jay powell the knew chairman of the federal reserve's script in terms of his prepared statements as he testifies today in front of the house finance minister services committee we will get that, report, and his script, what he is going to testify, coming up in nine minutes stay with us us because that may very well changing markets right now a decline dow industrials down 16, nasdaq down 4, s&p down 2 1/2, once we get prepared remarks we will bring them to you right here, in the 8 minutes' time, leading the charge to end obamacare once and for all attorneys general of texas and wisconsin, are filing suit claiming.

>> no, no longer forthwithed to have health insurance or face fine under new law the rage health care include a you unconstitutional 18 other states joining thissuit thanks very much for joining us also attorney general of texas ken paxton, also, weighing in here. attorney general, first kick us off here do you think you have the power to do what congress has not, completely repeal obamacare? >> this is really not about exercising power it is about reserving power that buttonings to the states kas obamacare was unconstitutional overreach yes, we do because when congress passed budget bill excuse me tax bill they got rid of the tax penalties from obamacare that left the individual mandate standing by itself, as chief justice roberts said in decision, the reason why this worked was constitutional because they

come pressed together the mandate and tax therefore a government revenue generating function to it constitutional it was a reach now tax part is gone. maria: so do you need an alternative? is this all you can do? is do away with what is remaining and not have an alternative in place? >> that is up to congress our job to enforce the kau this is clearly unconstitutional mandate unconstitutional, there is a broad reading of the mountain tied into this tax penalty that allowed the chief justice to say that this was this is authorized under the taxing power of congress the reality is that was a -- clearly you unconstitutional this is up to congress if they want changes. >> do you think the administration supports this suit. >> i would not be surprised given that president trump, campaigned against obamacare given that much as a republican congress tried to repeal it i think this is welcome news to the administration, and to a lot of congressmen. >> tell me how this gets

started do you have you been talking with the other attorneys general? what do you want in place of this? >> well we have got 20 state attorneys general onboard with this, frankly my hope that is this authority returns to the states where it buttonings. maria: right. >> one-size-fits-all mandate doesn't work we have seen that, in the series of broken promising from obamacare, put this back in hands of the states my state is already moving forward to cover people with preexisting conditions to rekri high-risk pool. >> i want to move to daca, particularly, with you ken the supreme court has rejected an pale from trump administration, on the legality of the program that protects undocumented immigrants from importation what do you make of the decision where does this go now. >> still ultimately i think going to see at the supreme court, it is going to continue to work itself through the circuit courts, i still think just matter of time before the supreme court rules on this. >> what about you, attorney

general? >> i agree ultimately, this is too big a thing to let -- the supreme court is going to take this up eventually. >> thanks for weighing in we appreciate it good to see you both, brad, ken, thank you. we will be right back sworn testimony prepared remarks, from jay powell back in a minute. you may be at increased risk for pneumococcal pneumonia, that can take you out of the game for weeks, even if you're healthy. pneumococcal pneumonia is a potentially serious bacterial lung disease that in severe cases can lead to hospitalization. it may hit quickly, without warning, causing you to miss out on the things you enjoy most. prevnar 13® is not a treatment for pneumococcal pneumonia...

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tuesday, february 27 top stories right now 8:30 a.m. on the east coast, the economy in focus waiting on testimony from the federal reserve chairman jay powell he sits before house financial services committee 10:00 a.m. eastern fox business taking you live when he speaks at 10:00 we are waiting in two minutes' time we will get his prepared testimony, and bring you that, as soon as it hits the wire, the markets are down going into the prepared testimony, down about 19 points on dow, down 5 on nasdaq two and a half on s&p 500 a january reading on durable-goods orders, in just a minute the estimate there calls for decline in durable goodsords 2% global markets mostly lower to look at european about indices ft 100 up 1/2 cac quarante down 4 dax down 51 in asia overnight stocks mostly lower exception of japan, it was up better than 1%, earnings still a driver intact on markets macy's on move to look at stock up 9 1/2% jumping after

retailer reported better-than-expected earnings upbeat outlook macy's shears to watch, starbucks noaa look with reserve stores first one in u.s. opens today an exclusive in seattle i will talk about executive chairman coming up this morning, futures lower waiting on the prepared text of jay powell dow industrials closed higher yesterday for third day in a row, up 400 points yesterday, we are waiting on prepared text as soon as we get it exactly 8:30:30, 30 seconds go to washington what are you examine pg. >> one word continuity i think going to be signaling continuity with janet yellen policies gradual increases not a big it should. >> inflation worry that is par. >> we have to see if he signals concern about nation we have not heard that out of other fed officials, his deputy was just speaking yesterday, and didn't signal a big worry about inflation in

fact he said that the economy might be able to grow a little bit faster without causing a lot of inflation, so we want to hear one of the things we want to hear what he says about productivity when -- >> productivity. >> focus on this to adam mishap ira. reporter: chairman powell says economic outlook rhyme strong, despite weaker than expected inflation moderate wage growth expects inflation and wage growth to accelerate he says fed believers monetary policy accommodation will boost inflation to target range help sustain labor market reiterates that further gradual increases in the federal funds rate best promote attain meant of fed inflation in jobs mandate. >> previous xksz have indicated three rate increases in 2018 with investors

expecting, the first this march, couldn'ting on volatility in markets the fed chair points out, that financial conditions remain aaccommodative he eved in 2017 reversinged that trend fed does not see that weighing heavily on outlook for economy labor market inflation, now since key headlines from testimony delivered later further gradual increases interest rate gdp grew roughly 3% second half 2017, economic outlook remains strong unemployment falling for all income demographic groups he will tell committee inflation below 2% target moderate wage growth is expected to continue, wage growths he says is in part by weak productivity, some bright spots for economy consumer spending rising household income and wealth rising growth in business investment up a quote sharply from last year, and the housing market

however is improving slowly, we and jay powell to begin testimony 10:00 a.m. back to you. >> check markets right here to see any reaction from that prepared testimony adam shapiro before you reported that, the market was down 19 points, things have worsened on this on this prepared testimony, dow industrials town 56 nasdaq down 15 s&p down 7 1/2 your reaction jon hilsenrath. >> said further gradual increases code word for continue newity what fed said in january policy statement, right now sticking with the plan for three interest rate increases this year could go to four, if we get the inflation up picked up where -- jay powell does neither want to veer sharply from what janet yellen set out a positive outlook on economy i don't see much for markets to be worried about here, i think maybe the markets are off really because there was a strong day yesterday i don't think there is much in this testimony to signal that --

that the fed is going to get in the way of the rally that we've seen last few days. >> he did talk about inflation in that, rp surprised. >> he said inflation low. >> run below fed 2% target five years going to pick up we know those numbers are going to pick up over next couple months built he doesn't sound very alarmed at this point. >> might pick up phone talk to businesses dealing with -- the cost of whether it is wage -- wages but also just core prices like cisco, food prices up 3% clip in recent quarter one thing. >> we have to remember, dagen has been so low so long the fed can tolerate a little bit, of this to think we can get to 2% without significantly overshooting it we are still making up for lost ground last few years. >> he knows how strong economy is housing market improving slowly i hope he gets asked

about kind of dramatic declines we saw, in new home sales, both in january, and back in december. big, big problems. >> have it is a really volatile statistic and we had very high level of new home sales in november, so issue i don't think too concerned about that does talk in testimony about that the markets not too concerned about volatility it would seem last few months i think view of the fed we needed a little bit of a correction we got it gentleman we saw 30 year 3.1%, 10 years below 3% see where market goes with rates creeping higher ji with treasury yields multi-year highs you have seen buyers walk into treasury last few days. >> higher than other places you are going to see foreign

investors coming into treasury german bund yielding less than % maria: starbucks lower as chain opens first serve store in seattle, joining me right now if fox business exclusive, is starbucks executive chairman howard schultz thanks for joining us. >> maria great to be with you. maria: i want to ask you about the reserve grabbed opening congratulations to you, first let me first take you through what we're talking about here that is the broad economy we heard prepared testimony from jay powell what can you tell us in terms of inflation in terms of price increases what you are seeing from your business? >> well i think throughout the country we're seeing a consumer that has much more optimism today than over the last couple years. i -- in terms of the starbucks business, and what we're trying to do we believe that we can create a premium experience sitting here in most beautiful star becomes store we have ever built, we are going to open close to 700

new stores this year, because of the optimism we have about the economy, and consumer behavior we are bullish on the u.s. >> for sure let me ask you howard we are talking about wages, we are focused on wages in terms of what that means for the federal reserve, what are you seeing in terms of wage increases our seeing a tighter labor market dtoday? >> i think with unemployment now less than 5%, certainly is a tightening with regard to the available people but as a result of the value and benefits that starbucks has been offering, free college tuition, things of that nature, i think people want the work for a company whose purpose and cause is something they can relate to not only about wages it is about being part of something larger than themselves, starbucks now clurjt employing 350,000 people worldwide, almost 200,000 people in u.s., our attrition rate lower than any

retailer in our industry because of the kind of relationship we have with our with our employees. and we have al said that the equity of the starbucks brand is defined by relationship trust we have with our people, and that is what built the company. >> let's talk about, you are taking action in wake of tax reform how are starbucks employees benefiting from new tax law? >> well we had approximately 500-million-dollar benefit as a result of the tax cut. i personally did not believe that a america needed 21% corporate tax cut but as a result of that we gave a significant part of that tax benefit back to our people. on top of what we had already done over the last couple years i think we are one of few in america that recognize that in order to really benefit from a tax cut we had to share success with people the hallmark history tradition heritage of our company all along.

maria: absolutely, you are one of i think 200 companies passing on that savings to employees, about whether it be what you are doing in terms of stock or in terms of new money or thousand dollar bonus checks we keep hearing about from companies passing on that tax savings to employees you weren't a fan of the tax plan going into it. >> i wasn't i thought there was a real opportunity for comprehensive tax reform we did not really get tax reform we gave the a significant corporate tax cut i think will benefit the economy obviously benefit the compensates and shareholders but i think we could have done a lot more, to help so many americans, who are being left behind. maria: what would you want what would you have liked to do instead howard? >> well, for one thing i think the -- this could have been tied to infrastructure, this could have been tied to education, and learning. there are a number of

opportunities that i think we will look back on say we missed an the unit to do a lot more for the american people 37 i think when you look at tax cuts onto itself, that 21% tax cut will allegedly over a trillion dollars to already 21 trillion-dollar debt i think we are not paying much attention to that, while we are robbing from the future of young people in america, who ultimately are going to have to pay for 21 trillion-dollar tax deficit i this i the k question would we should be asking ourselves what kind of country do we want to really live in? do we absent about the to live in a crunch u.s. sitting with 21 trillion dollars in debt i don't think so do we want to life in a country where kids are afraid to go to school because there is a potential for violence? i don't think so. do we want to live in a country in which tax cut could have been a comprehensive tax reform? that could have benefited lots

of people not only corporations? so i think there's an opportunity to take a more sensible approach to allees big complex issues, in which compromise on both sides, and ideology does not rule the day. >> increasingly, you've alleged focused on big broad issues but increasingly as you look at what the country may or may not need, it will sounds more and more like you are running for something, are you going to run for president in 2020 howard? >> not -- i am not here we are sitting at starbucks. because of my day job as executive chairman on the heels of opening the most successful starbucks store in history in china now opening reserve stores, i am trying to do everything i can to benefit our shareholders as executive chairman, and i think as a private citizen very concerned about doing everything i can to elevate the national conversation to saying that, are not based on ideology, but really trying to walk in the

shoes of the american people. maria: yeah. >> and doing everything i possibly can to try and will get some -- real i think, sensible levels of conversation that representative both sides and reach a compromise on things really important to the future of the nation. >> you have done that many years, you are always suing your position as responsibility to bring people together i know that to just to clarify you said you are not going to run for president? >> i said that i am doing everything i possibly can as a private citizen to advance the because of the country. >> sounds like you are running for president howard. >> no, i didn't say that come on maria we know each other too well. >> ep scale of reserve gorgeous behind you what growth opportunities are you seeing for this new venture tell us how this benefits overall brand what other offerings, customers will

seal. >> this is important opportunity to talk about future of brick-and-mortar retail in america over the last few years, we have built two reserve stores one in seattle one in china. those about were designed to build a super premium brand starbucks about rfsh we are building reserve stores this is first of many building stores we believe experiential tale is future of company taking to super premium experience of coffee, of premium italian food called. >> bringing in alcohol and spirits we think we can build about 1,000 of the globally what i have also talked about as a result of e-commerce, and the amazon effect of things many retailer across the country have no longer been able to afford those existing rents they have shut stores, if you walk down madison avenue in your own city from say, 55th to 79th or even

downtown soho you are going to see empty storefronts likes of by we have not seen for years the reason those stores are empty tenants can no longer afford represennts, rents comin down not cyclical going to be permanent land lords unable to fill spaces unless they realize new norm relentless are coming down we are going to aggressively open stores take advantage of that, starbucks stores traditional stores new reserve stores will benefit in addition to that 3 00 stores in china opening a new store every day in china i said publicly that our china business will be bigger than u.s. business when said and done. maria: that is incredible. >> starbucks achieved a level of maturity 2000 around the world 100 million customers a week, i still look at starbucks as growth company, and i think what i have just

drained described is evidence. >> you acquired more store footage from partners i want to ask you about the cashless store right now, your k testing one cashless store right now, how is going cashless affecting the business what is your vision there? >> well i think over last four or five years starbucks created really the proxy for a mogul integrated digital payment system almost 50% paid with people's smartphones now testing a cashless store more efficient doing that in china 70% of our business already cashless, i think it is safe to say over next couple years, many of our stores across the country will be cashless. and i have spoken most recently about the fact that i strongly believe and this is not about bitcoin but i do

believe that given the framework and the platform that we have in our dej mobile a dym mobile app could be one of the first companies to have a propriety incidentally concurrency into our application, our legal of innovation in terms of retail refugee, all things that i think are skewed towards entrepreneurial dna of the company i think most importantly doing it in a way in which we are sharing success with our people, and doing everything we can, to be the kind of company that that balances profits and growth and shareholder value with making sure that we are sharing the success with our people. >> you know it is a good point because you have expressed skepticism over bitcoin you don't need that you can do your own payment methods digital within your family of stores, is that use the blockchain technology?

>> yes i think blockchain technology is probably about the rails in which integrated app at starbucks will be sitting on top of, but i think you know as i talk about all these things, i think it is important to take a step back and realize something, we have al taken the long term we've also a looked at things that are not based on this quarter, or next quarter's performance but having said that, we've had huge success because we have been able to take advantage of the opportunity front of us at the same time invest ahead of the growth curve have curiosity to see around corners continue to innovate within core business the real question any brick-and-mort brick-and-mortar retailer how do you become as relevant if you look what we have accomplished what we are talking about the future of

starbucks domesticallies around the world our best as the in front of us we have had issues in the u.s. around comp store sales that is the issue that is noise we have here to stay to maintain our leadership position, and our leadership position, is defined by exceeding the expectations of our customers, and also xeegdz expectations of our people. and at the same time, and i said this to you many times the responsibility of a corporation today is much different than it ever has been. and that means that we have to do per for our people, more for the communities we serve, we also have to be a voice for reason and sensible solutions whether tax reform immigration, unfortunately, the tragedy that took place in florida we can't be silent we can't be indifferent we have to speak up to the people in america, about whose voices are not being heard. maria: so in terms of starbucks' relationship with the nra, your stance on

nimprisonmenta? are you make changes today? -- >> starbucks never had a relationship with the nra, many years ago, did you might remember, because of the law almost 46 states opened carry we respectfully asked our customers not to bring assault weapons or weapons of war into our store, and i we were pleased to see people respected that. starbucks is not here in in i way to get engaged in that conversation other than to say i think there are sensible solutions that can be achieved on both sides, preserving the second amendment i think once again answering the question what kind of country do we want to live in? do we want to live in a country parents and grandparents are afraid have anxiety about dropping kids off in school? i don't think that is the kind of country we want to live in, i think there are ways in

which we can establish a compromise and a solution that satisfies many people on both sides of the aisle if we come to this not through the prisism of ideology, but we come to this as americans to heal the nation, and come together as one people. maria: howard these issues have always been very important to you i know that do you feel that you could do more in a different seat perhaps reason i for senate? >> perhaps run for senate. >> no, i don't, maria i don't have any inclination to run for senate i am very satisfied where i am starbucks but i do realize that we do need voices in the country that are not tied to any ideological position, voices of reason voices of compromise, clearly the country is divided we every all in this together we are all americans, and we have

an opportunity if we can just take a step back, from the things that divide us realize there are opportunities for us to come together on many of these issues. >> all right really quake where will we see a second reserve premium reserve store? >> we will open reserve stores in chicago, in new york city, the next will open in milan in september and the next roasterie in new york under construction 9th and 15th next to chelsea market will open in fall just the beginning of a new wave of starbucks super premium stores i have think will capture imagination of customers. maria: looks beautiful integrations to you we will talk with you soon this you so much good to see you again howard schultz executive chairman starbucks. we'll be right back mom, dad, can we talk?

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maria: welcome back, in over an hour jay powell the new chairman of the federal reserve will testify before the house financial servicer committee for the first time as fed chief the host of "varney & company" stuart varney toaway? good morning. >> good morning we know what he is going to say 10:00 sharp eastern the minutes the transcript was being released he is going to say economy is fairly strong, the jobless rate for au demographic groups downs consumer spending up incomes up wealth up housing improving slowly he says the kicker there is low and stable inflation. now here come the fed watchers they are going to read tea leaves up and down with a zoo i think the best fed watcher is market, 25 points on dow

industrials market saying this is no huge deal this does not mean that we're going to have squaden sharp rise in interest rates, i think the markets saying steady as she does from the federal reserve, that is how we've got it right now. >> i am surprised we are not seeing gains, following yesterday's huge day, 400 points at the close. >> don't forget friday another 300 points there up 700 points two days. >> what is this don't you think we can take a breather now and again. maria: all right, all right. i know you have more five minutes see you in a few "varney & company" top of the hour after man, man, join stuart by the way, j.p. morgan having an investor day macy's shares soaring nicole petallides on floor of the new york stock exchange watching stocks, nic. >> good morning, maria. so you are absolutely right we are seeing macy's picking up some retailers as well came out with their numbers earnings strong quarter for their results, ultimately you see stock up 9, 10% up 10 1/2%

right now a positive couple months after the holidays upbeat guidance forcing a possible return to annual comp sales growth in 2018, big picture they have been slashing jobs closing underperforming stores bringing up rest of the retailer we will hear from a lot of retailers tj maxx all brands gap in order stom big for retail j.p. morgan relatively flat to downside this morning they are saying that the lower tax, and higher interest rates could help to increase the numbers, for annual pretax net income to up 17 havd% three years that is good news ultimately help them a big one automobile biggest by assets, overall the investor day presentation here looking good out performing kbw and s&p 500 coming up final thoughts from all-star panel back in a minute. where's frank?

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>> welcome back final thoughts lee carter. glrcht one of the biggest asked is this gun control than any other i think we're going to see something different happening this time. >> jay powell is tested today so far is fast first stage ever his test. >> he talked about inflation and what we'll see the q and a most important. >> right, right and we're going to see the lip quiver how does he compose himself but pretty well. >> i think the testing for everybody republican and

democrat should be if you're proposing greater gun safety rules give me the evidence that they work. that your ideas will make us a favorite. >> we know with background check work. >> improved background checks did a lot from '94 to 2002. vfnlgt a great day everybody. this is stuart in "varney & company." >> thank you indeed this is fed day please do not turn your tv u off. we will make this entertaining and that's a promise. good morning everyone. jerome powell he's the new guy in one hour he makes his first public appearance. here's what he's going to say. we know already. he's painting rosy picture of the economy. spending, incomes, welt, all rising -- jobless rate falling for all demographic groups housing slowly improving most importantly, inflation is low and stable. all right, now the fed watches take over reading the tea level the how far and how fast interest rates will rise. for almost ten years res